re: Ann: Interim Financial Report for the hal...
"Stocks that have gone from 2 to 12 and back to 2 or from 10 to $1.00 then back to 10 again with the 'long term investors' still sitting on them."
Vendor that is way too much of a generalisation. Long term holders is a bit of a loose term in many cases. An example was my entry into SLR at $2.40 I think around July or Aug 2011. I decided it was worth at least $3 and probably more and was prepared to wait "long term" for it to get there. When it hit $3.80 in early 2012 I decided to sell all of them because gold was coming off an overbought peak at 1900 and 3.80 was beyond my short term idea of fair value. Long term I was looking for 4.50 but that was a 2 year target. I figured after it had passed my original target by a large margin there was no point in waiting. When a stock goes from $1 to $10, do not assume all long term holders are still going to be in there. Many of us sell when our targets are reached. Often I increase my targets so I don't usually sell at my initial target. With SLR it got there so quickly that not enough changed for me to raise my target and I sold. I later got back in at much lower prices near $2 for the "long term" again, but when it hit 3.80 again, I was again in a position where I had to sell because again my target was unchanged for that time frame. Since that second sell, I now have to consider myself a trader in that stock because of its volatility and ability to reach my targets so quickly. The point is we don't all sit on stocks from $1 to $10 and back to $1 again regardless of whether we call ourselves long term investors or not. A target is a target and when met many of us sell.
ABU Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
